Significant Drop in French Inflation

February witnessed a notable decrease in France's Consumer Price Index (CPI), with an annual rise of just 0.8%. This marks the first time inflation has dipped below 1% since February 2021, as reported by INSEE, the national statistical office, in a preliminary report released on Friday. The inflation rate fell from January's 1.7%, surprising analysts who had anticipated a higher figure.

Key Factors Behind the Decline

The primary driver behind this decrease was a significant 5.7% drop in energy prices compared to February 2024. In contrast, tobacco prices saw an increase of 4.5%, and service prices rose by 2.1%.

Monthly Inflation Remains Steady

On a monthly basis, the inflation rate in February remained unchanged. The Harmonized Index of Consumer Prices (HICP) recorded a year-on-year rate of 0.9%, maintaining the same level as the previous month.